EU warns it will retaliate if US imposes ‘disastrous’ auto tariffs

The European Union will retaliate if US President Donald Trump imposes “disastrous” tariffs on automobiles, EU trade commissioner Cecilia Malmstrom warns.

“We are preparing a list of rebalancing measures,” Malmstrom says, as Washington studies imposing duties on cars following its tariffs on aluminium and steel.

“Similar moves on cars would be disastrous,” the Swedish commissioner tells a conference in Brussels.

Her warning comes before her boss, European Commission chief Jean-Claude Juncker, travels to Washington next Wednesday to try to persuade Trump to drop tariffs on metals and avoid duties on cars.

Trump imposed duties of 25 percent on steel imports and 10 percent on aluminium in March, but had given temporary exemptions to the EU and some other close trading partners as talks continued.

— AFP

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